Aluworks to cut down on exports

Aluworks Ghana Limited, an aluminium rolling mill, would cut down on exports and give priority to local industries following the expected reduction in raw material supply from the Volta Aluminium Company (VALCO).

Aluworks, which buys aluminium ingots from VALCO and processes into semi-finished products like aluminium coils, flat sheets and circles, exported 40 percent of its products last year earning 11.7 million dollars in revenue.

Mr John Nyako, Managing Director of Aluworks, told the GNA that the company, which takes 10 percent of VALCO production, representing 20,000 metric tonnes, would have its supply reduced by VALCO, which has cut its production by 25 percent following the energy crisis.

He said Aluworks is in the process of talking to VALCO to see how best to minimise the effects on Ghanaian industries and West African customers, but it would have to cut down on export to ensure that the local market does not suffer unduly.

Local household utensils producers consume about 5,000 metric tonnes from Aluworks and export 30 percent, housing development account for 8,000 metric tonnes and 500 metric tonnes goes to the informal sector.

Mr Nyako said the export business is good but explained that the local aluminium industries have been nurtured from the beginning by Aluworks and their continued survival is important for the national economy since they employ productive labour.

"We have extremely good relationships with VALCO, which has been a good supplier for many years and in situations like this, we put our heads together to see how best we can meet the needs of the industries we serve", Mr Nyako said.

VALCO, on March 2, this year, shut one of its four potlines in view of power crisis to enable the VRA save 75 megawatts of electricity to provide spinning reserves and repair faults without resorting to power shedding.

The energy crisis comes at a time that Aluworks was carrying out expansion and upgrading works to increase its annual production by 50 per cent to 30,000 metric tonnes, but the Volta River Authority (VRA) has not requested the company to cut down its power consumption.

Mr Nyako said Aluworks would, however, not cut down on its 430 workforce, adding that in 1998/99, when a similar energy problem emerged, the company was required to put in place power efficiency measures and stay within a certain quota.

He described the current energy crisis as "a passing situation" but a difficult period for the entire nation, and said the future could only be bright if the necessary investments are made in the energy sector.

Mr Nyako pointed out that it would be wrong to see the energy problem as a VALCO problem. It is a national problem, which must be solved, stating that, VALCO's inputs into the national economy was immense and must, therefore, be supported.

He said the aluminium industry in Ghana feeds the West African regional market with raw materials for tertiary industries and these were some of the investments, which could place Ghana at commanding heights in the sub-region if properly supported. For example, Nigeria has tried for so many years to establish an aluminium smelter, but has not been able to complete it.